This year is going to be a big year for the smart contract cryptos. Smart contracts are small pieces of code that are self-executing in nature and reside on the blockchain, enabling it to generate applications. And all of the huge trends for 2022 from gaming tokens to metaverse to DeFi (decentralized finance) and Web 3 applications, will be constructed on the smart contract channels.
What Is A Smart Contract?
Before we go into detail with the top smart contract cryptos, it is crucial for us to know what a smart contract is. As stated above, it is a self-implementing contract with the conditions of the agreement between the seller and the buyer is directly written into code lines. The agreement and the code prevail through a decentralized, distributed blockchain network. The code handles the execution, and also the transaction can be tracked and is fully irreversible.
Smart contracts allow trusted agreements and transactions that can be carried out among anonymous, disparate parties without the requirement for any central authority. Some of the smart contract examples include the Government voting system, financial market, etc.
Top Smart Contract Cryptos For This Year
There are numerous smart contract cryptos in the market, all competing to lure the interest of developers and key projects. It is not clear yet, which digital currency will arrive ahead in this competition of blockchains. There are numerous players and big technical problems or security flaws can knock down any of them while they are operational. Along with that, Solana proved that there is always an opportunity for a newer digital coin to shine above all. Among the top 10 smart contracts cryptos, we have taken the best 5 for you.
Nevertheless, there are 5 smart contract cryptos that should stay in your radar for this year. Let us begin with the list of smart contract blockchain cryptos.
Among the list of best smart contract coins, this is always the first one. Ethereum has a crucial year ahead of it. It is still left to complete its upgrade to ETH2, which should make it quicker and decrease gas fees. Presently, high fees and network congestion are thrusting investors and developers alike to seek alternatives to Ethereum.
The challenge of the Ethereum smart contract is that this is a phased upgrade, and as the latest note from J.P. Morgan illustrated, it may not make the complete shift until 2023. That would offer other networks a large window to take more of the market share. Presently, Ethereum still hosts the lion’s share of applications and is second only to BTC (Bitcoin) in respect to market cap.
Solana is among the top-performing cryptos of the previous year. In terms of market cap, it escalated from 120th place at the beginning of 2021 to fifth place by the end of that year with a price rise of more than 11,000%.
Solana is among the fastest cryptos presently in the market. It can process nearly 50,000 to 65,000 transactions every second (TPS), in comparison to 15 to 45 TPS of Ethereum. Its average cost on every transaction is 0.00025, as per its website. And it has more than 1,000 projects in its ecosystem.
It often seems as if ADA is running a varied race from other digital currencies. It takes a slow-and-steady method to generate, preferring to peer review and test wholly before rolling out new operations. As an outcome, it only launched smart contracts last September. And even then, this smart contract crypto came under fire on social media as enthusiasts said it has not delivered everything it promised. This is among the new smart contract platforms.
Charles Hoskinson, founder of Cardano stated there are more than 100 projects in development in its ecosystem, with nearly 20 or 30 ready to launch in the initial quarter of this year. This will be a chance of Cardano to prove the critics wrong and portray what potential the ecosystem holds.
To evaluate what makes AVAX stand out, we are required to take into account something known as “finality.” Without being too technical, there is a difference between simply conducting a transaction quickly and actually concluding that transaction. It is a bit like making a payment on a credit card that gets recognized by the retailer but is then shown as pending on your account for several days until the complete transaction is actually finalized.
Avalanche states it is the quickest and best smart contract platform 2022 in respect to finality, defeating even Solana. It uses three varied blockchains on its system to attain this, while also ensuring low fees and keeping the platform scalable. As per DeFi Llama, Avalanche presently has more total value locked on its platform compared to Solana.
Cosmos terms itself “The Internet of Blockchains.” Cosmos is aimed at interoperability which implies ensuring varied blockchains can communicate with each other. As people start to use various different smart contract networks, interoperability becomes more crucial. Rather than having personal silos that cannot operate together, the vision of Cosmos is an ecosystem of blockchains that interact with one another.
These smart contract cryptos that have been mentioned above are available on various crypto exchanges. There is one thing that should be kept in mind, that it is unlikely that a winner takes all the race. There can be many other cryptos from the smart contracts that can win the race. The coins that we have stated above are based on the market prediction that is presently operational.